Just as BDC earnings season heats up, several other developments occur just as sector prices slump…
BDC earnings season begins with strong results from three very different BDCs as the sector remains at new price highs. We also share two important credit developments that affect multiple BDCs, drawn from the BDC Credit Reporter.
After a day away, we publish two days worth of annotated BDC news coming from some of the sector’s most recognizable names.
Main Street Capital was much improved in the IVQ 2020 as discussed on its latest conference call.
Main Street Capital offers up some preliminary metrics about one of its 3 investing segments. Unfortunately, the data leaves the BDC Reporter with more questions than answers.
Main Street Capital issues new unsecured debt on very favorable terms. The BDC Reporter looks at the impact on leverage, earnings and the outlook for the BDC both in the short and longer term.
Main Street is not deterred by the bankruptcy filing of one of its restaurant companies. Indeed, the BDC – and sister fund HMS Income – are doubling down and – with an equity partner – acquiring the assets of the bankrupt business.
The famous restaurant chain is the ninth BDC-financed company to file for bankruptcy in July and there are multiple BDCs involved in both the first and second lien debt. Re-published from the BDC Credit Reporter.
A third week of dropping BDC sector prices as market confidence falters. We review the three biggest losers and one of the few weekly winners and also discuss an update from New Mountain Finance and a buyback at THL Credit. We end with the inevitable review of BDC credit trends.
Nominally, this is a re-published BDC Credit Reporter about a drop in the value of bankrupt portfolio company Bluestem Brands, in which three public BDCs are involved. It’s actually an opportunity for the BDC Reporter to discuss a worrisome trend: a decline in recoveries on troubled investments. The implications for the BDC sector could run into the billions of dollars.